The Three Outside Up pattern is an extended version of the Bullish Engulfing pattern. In a Three Outside Up pattern the first candle is red. It is followed by a green, and its body is larger than the body of the previous candle, that is, the second candle absorbs the first. The third candle is also green. Its closing price is higher than the previous candle. It is a down trend candlestick pattern and as a rule, the Three Outside Up pattern indicates a bullish trend reversal and the beginning of price growth after the fall.
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